As it prepares to limit how AAdvantage miles and Loyalty Points are earned, American Airlines is laying out the criteria for its preferred travel agencies, which give us an idea of which outlets will still quality for these frequent flyer benefits.
Requirements For American Airlines Preferred Travel Agencies
Starting with tickets issued on or after May 1, 2024, American Airlines will limit whether you can earn Loyalty Points and miles to those who:
- Book directly with American and eligible partner airlines
- Book travel anywhere as an AAdvantage Business member or contracted corporate traveler
- Book through preferred travel agencies
- American will share a list of eligible preferred agencies on aa.com in late April
While that list will not be shared till late April, AA has already given us an idea of the requirements to be on that list:
- 2024 incentive agreement requirement
Agencies must be on a 2024 incentive agreement issued by American at American’s sole discretion. If, at any point, their incentive agreement with American ends, the agency will no longer be able to participate in the preferred agency program.
- New Distribution Capability (NDC) adoption requirements
Agencies must adopt and implement American’s NDC and shop and book through American’s NDC connections, meeting the progressive NDC thresholds below. Shopping and booking must be done in accordance with American’s connection and capacity requirements.
| Date | NDC booked threshold |
|---|---|
| April 21, 2024 | 30% |
| October 31, 2024 | 50% |
| April 30, 2025 | 70% |
- Preferred agency display requirements
As customers consider purchasing an American Airlines offer, fare rules, product attributes, and fare restrictions should be fully displayed and clearly communicated. A new product attribute of American’s offers is the ability to earn AAdvantage miles. For an agency to be considered preferred, they must demonstrate their ability to clearly communicate to customers when they earn AAdvantage miles in the online booking tool throughout the booking flow before a purchase is finalized. Agencies must contact their Modern Retailing business manager to begin the review and approval process on display criteria.The deadline for the display qualification criteria is July 1, 2024, to allow time for the completion of any necessary updates.
If an agency meets the criteria for the first NDC threshold on April 21, 2024, customers with tickets issued by the preferred agency between April 21 and June 30 will earn miles and Loyalty Points. In order for customers purchasing a ticket July 1, 2024, and beyond to earn, however, the agency must meet the display criteria.
Meeting these requirements does not guarantee placement on AA’s preferred travel agencies list. Such placement remains at American’s sole discretion.
This Is About Upsells
A world about NDC. In short, NDC technology provides customers more opportunities to tailor their experience, including elevated offers and ancillary products in more channels.
Enhanced offerings available in NDC connections and on aa.com include Main Plus, Main Select and Flagship Business Plus fares, carbon offsets via Cool Effect, and day-of-travel features such as seat choices, upgrades and pre-ordered meals.
In other words, American Airlines wants to be able to upsell its various suite of ancillary products wherever you book your tickets. To incentivize this, you won’t earn miles and status points through channels that cannot offer this full experience.
CONCLUSION
American Airlines has laid out its requirements to be considered a preferred travel agency, although it will retain final discretion in awarding that designation.
Theoretically, I see no barrier for the major travel agencies like Expedia or Kayak not to meet these requirements. We’ll have to wait to late April to see who makes the cut, but I am not certain yet that customers will broadly feel the pain. Those who might include bookings made via American Express or Capital One travel portals, though even that remains up in the air.
AA is gambling by closing off booking channels (i.e. limiting potential and future business), but feels confident that this approach allows it to best monetize its product offering and capture revenue for its loyalty program.
The headline sounds worse than the actual plan changes. Some bargain hunters might be affected but smart travelers (who are accustomed to doing research) will adjust and continue to find ways to succeed within the new rules.
I’d hope that since AA is controlling the booking channels and requiring agencies to use American’s NDC that it would somehow eliminate the need for passengers to contact the agency directly when the need to make changes to a booking arises. I’ve had cancellations/delays/upgrade for $$$/seat changes/etc occur prior to the day of departure and attempted to contact AA directly only to be told by the agent that I need to contact the travel agency that booked the reservation. I understand why they would want the agency to deal with certain ticket mods, but some agents apply a blanket “call the agency” regardless of whether its a change that AA *should* be able to make when they see that the booking was made through a 3rd party.
I just don’t see how this is a big deal at all. Why would you not book AA through their website (or possibly codeshares on OW partners)? What do people stand to lose?
Do any of your Award Expert clients have an incentive to book elsewhere? We all know Amex customer service is abhorrent, but surely they’ll comply with whatever restrictions AA has because IAP is a big benefit for them.
I think your last sentence is the crux of the change:
“….allows it to best monetize its product offering and capture revenue for its loyalty program.”
It will cause grief on the smaller agencies. If UA and DL are sharp, they’ll go light on the topic. But, most airlines have a herd mentality, so this type of arrangement will become the norm.
“final dissection” or “final discretion”? Hahaha
Ha.
What about bookings through corporate travel like Carson Wagonlit and BCD?
Those will, apparently, not change for now.
My guess is that the big two: Expedia (also Orbitz, Cheap Tickets and Travelocity- along with the back end for AMEX’s consumer business) and Priceline (also Kayak) will be just fine. The issue will be the random, offshore OTAs